HB0135 - Excise tax amendments.

 

2001

State of Wyoming

01LSO-0131.E1

ENGROSSED

 

 

 

HOUSE BILL NO.  HB0135

 

 

Excise tax amendments.

 

Sponsored by:

 

 

A BILL

 

for

 

 1  AN ACT relating to taxation and revenue; providing
 2  amendments to excise tax provisions as specified;
 3  clarifying the exemption for business personal property
 4  when a business is sold; providing for a tax on admission
 5  to places of recreation and equipment used as specified;
 6  clarifying the exemption for motor vehicles used in
 7  interstate commerce; imposing penalties for failure to
 8  remit collected excise taxes; requiring a nonresident
 9  contractor to register a construction project as specified;
10  clarifying tax liability of a subcontractor hired to
11  provide labor only to the improvement of real property;
12  repealing sales tax exemption for admission to county or
13  municipal recreation facilities; and providing for
14  effective dates.

15 

16  Be It Enacted by the Legislature of the State of Wyoming:

17 

 

Page  1

 

 

 

 1         Section 1.  W.S. 39-15-101(a)(vii)(M) and
 2  39-16-101(a)(iii)(M) are amended to read:

 3 

 4         39-15-101.  Definitions.

 5 

 6         (a)  As used in this article:

 7 

 8              (vii)  "Sale" means any transfer of title or
 9  possession in this state for a consideration including the
10  fabrication of tangible personal property when the
11  materials are furnished by the purchaser but excluding an
12  exchange or transfer of tangible personal property upon
13  which the seller has directly or indirectly paid sales or
14  use tax incidental to:

15 

16                   (M)  The sale of a business entity when sold
17  to a purchaser of all or substantially all not less than
18  eighty percent (80%) of the value of all of the assets
19  which are located in this state of the business entity when
20  the purchaser continues to use the tangible personal
21  property in the operation of an ongoing business entity in
22  this state. As used in this subparagraph, "business entity"
23  means and includes an individual, partnership, corporation,
24  corporate division, joint stock company or any other

Page  2

 

 

 

 1  association or entity, public or private, or separate
 2  business unit thereof.

 3 

 4         39-16-101.  Definitions.

 5 

 6         (a)  As used in this article:

 7 

 8              (iii)  "Sale" means the transfer of title or
 9  possession of tangible personal property from a vendor for
10  a consideration for storage, use or other consumption in
11  Wyoming excluding the exchange or transfer of tangible
12  personal property upon which the seller has directly or
13  indirectly paid sales or use tax incidental to:

14 

15                   (M)  The sale of a business entity when sold
16  to a purchaser of all or substantially all not less than
17  eighty percent (80%) of the value of all of the assets
18  which are located in this state of the business entity when
19  the purchaser continues to use the tangible personal
20  property in the operation of an ongoing business entity in
21  this state. As used in this subparagraph, "business entity"
22  means and includes an individual, partnership, corporation,
23  corporate division, joint stock company or any other

Page  3

 

 

 

 1  association or entity, public or private, or separate
 2  business unit thereof.

 3 

 4         Section 2.  W.S. 39-15-103(a)(i)(H) is amended to
 5  read:

 6 

 7         39-15-103.  Imposition.

 8 

 9         (a)  Taxable event. The following shall apply:

10 

11              (i)  Except as provided by W.S. 39-15-105, there
12  is levied an excise tax upon:

13 

14                   (H)  The sales price paid for each admission
15  to, or user fee charged for the use of any place of
16  amusement, entertainment, recreation, games or athletic
17  event or the equipment located on such facility, whether
18  indoors or outdoors. If any persons other than employees,
19  officers of the law on official business or children under
20  twelve (12) years of age are admitted free or at reduced
21  rates to any such place when an admission charge is made to
22  other persons, an equivalent tax shall be paid by these
23  persons based on the price charged to other persons;

24 

 

Page  4

 

 

 

 1         Section 3.  W.S. 39-15-105(a)(ii)(B) and
 2  39-16-105(a)(ii)(A) are amended to read:

 3 

 4         39-15-105.  Exemptions.

 5 

 6         (a)  The following sales or leases are exempt from the
 7  excise tax imposed by this article:

 8 

 9              (ii)  For the purpose of exempting sales of
10  services and tangible personal property protected by
11  federal law, the following are exempt:

12 

13                   (B)  Sales of railroad rolling stock
14  including locomotives purchased by interstate railroads,
15  aircraft purchased by interstate air carriers which are
16  holders of valid United States civil aeronautics board
17  permits or authorities and trucks, truck-tractors,
18  trailers, semitrailers and passenger buses in excess of ten
19  thousand (10,000) pounds gross vehicle weight which are
20  purchased by common or contract interstate carriers or
21  which are operating in interstate commerce under exemption
22  clauses in federal law if they are to be substantially used
23  in interstate commerce;

24 

 

Page  5

 

 

 

 1         39-16-105.  Exemptions.

 2 

 3         (a)  The following purchases or leases are exempt from
 4  the excise tax imposed by this article:

 5 

 6              (ii)  For the purpose of exempting sales of
 7  services and tangible personal property protected by
 8  federal law, the following are exempt:

 9 

10                   (A)  Railroad rolling stock including
11  locomotives purchased by interstate railroads, aircraft
12  purchased by interstate air carriers which are holders of
13  valid United States civil aeronautics board permits or
14  authorities and trucks, truck-tractors, trailers,
15  semitrailers and passenger buses in excess of ten thousand
16  (10,000) pounds gross vehicle weight which are purchased by
17  common or contract interstate carriers or which are
18  operating in interstate commerce under exemption clauses in
19  federal law if they are to be substantially used in
20  interstate commerce;

21 

22         Section 4.  W.S. 39-15-108(c)(iv) and
23  39-16-108(c)(xiv) are amended to read:

24 

 

Page  6

 

 

 

 1         39-15-108.  Enforcement.

 2 

 3         (c)  Penalties.  The following shall apply:

 4 

 5              (iv)  Any vendor who under the pretense of
 6  collecting the taxes imposed by this article collects and
 7  retains an excessive amount or who intentionally fails to
 8  remit to the department the full amount of taxes when due
 9  is guilty of:

10 

11                   (A)  A misdemeanor if the amount of taxes
12  collected is five hundred dollars ($500.00) or less
13  punishable by a fine of not more than seven hundred fifty
14  dollars ($750.00), or imprisonment in the county jail for
15  not more than six (6) months, or both; or

16 

17                   (B)  A felony if the amount of taxes
18  collected exceeds five hundred dollars ($500.00) punishable
19  by a fine of not more than five thousand dollars
20  ($5,000.00), or imprisonment for not to exceed three (3)
21  years, or both.

22 

23         39-16-108.  Enforcement.

24 

 

Page  7

 

 

 

 1         (c)  Penalties. The following shall apply:

 2 

 3              (xiv)  W.S. 39-15-108(b)(ii), (c)(iv) and
 4  39-15-107(b)(iv) apply to use taxes under this article;

 5 

 6         Section 5.  W.S. 39-15-303(b) by creating a new
 7  paragraph (iv) and 39-16-303(b) by creating a new paragraph
 8  (iv) are amended to read:

 9 

10         39-15-303.  Imposition.

11 

12         (b)  Taxpayer. The following shall apply:

13 

14              (iv)  Any nonresident prime contractor and any
15  resident prime contractor who hires a nonresident
16  subcontractor shall register any project with the
17  department of revenue not less than fifteen (15) days
18  following the start of a project pursuant to a contract. 
19  The nonresident prime contractor shall provide a properly
20  executed bond as required by paragraph (iii) of this
21  subsection, or a cash deposit of not less than four percent
22  (4%) of the total payments due under the contract.  The
23  cash deposit shall be refunded to the contractor upon the
24  department's receipt of a properly executed surety bond or

Page  8

 

 

 

 1  upon satisfactory completion of the project. Failure to
 2  register with the department within the time period
 3  required by this paragraph shall result in a penalty
 4  assessment of one percent (1%) of the total payments due
 5  under the contract.

 6 

 7         39-16-303.  Imposition.

 8 

 9         (b)  Taxpayer. The following shall apply:

10 

11              (iv)  Any nonresident prime contractor and any
12  resident prime contractor who hires a nonresident
13  subcontractor shall register any project with the
14  department of revenue not less than fifteen (15) days
15  following the start of a project pursuant to a contract. 
16  The nonresident prime contractor shall provide a properly
17  executed bond as required by paragraph (iii) of this
18  subsection, or a cash deposit of not less than four percent
19  (4%) of the total payments due under the contract. The cash
20  deposit shall be refunded to the contractor upon the
21  department's receipt of a properly executed surety bond or
22  upon satisfactory completion of the project. Failure to
23  register with the department within the time period
24  required by this paragraph shall result in a penalty

Page  9

 

 

 

 1  assessment of one percent (1%) of the total payments due
 2  under the contract.

 3 

 4         Section 6.  W.S. 39-15-303(b)(ii) and 39-16-303(b)(ii)
 5  are amended to read:

 6 

 7         39-15-303.  Imposition.

 8 

 9         (b)  Taxpayer. The following shall apply:

10 

11              (ii)  Any subcontractor who contracts with a
12  general or prime contractor is liable for sales taxes as a
13  general or prime contractor. The general or prime
14  contractor shall withhold three percent (3%), plus the
15  increased rate under W.S. 39-15-104(b) if the tax under
16  that section is in effect, of the payments due a
17  nonresident subcontractor arising out of the contract
18  entered into between both contractors. The contractor shall
19  withhold the payments until the subcontractor furnishes him
20  with a certificate issued by the department showing all
21  sales taxes accruing by reason of the contract between them
22  have been paid. The department may demand the withholdings
23  at any time to satisfy the sales tax liability of the
24  subcontractor and any balance shall be released by the

Page 10

 

 

 

 1  department to him. If a contractor fails to withhold
 2  payments or refuses to remit them upon demand by the
 3  department he is liable for any sales taxes due the state
 4  by the nonresident subcontractor. This paragraph shall not
 5  apply to any subcontractor hired to provide labor only to
 6  alter, construct, improve or repair real property;

 7 

 8         39-16-303.  Imposition.

 9 

10         (b)  Taxpayer. The following shall apply:

11 

12              (ii)  Any subcontractor who contracts with a
13  general or prime contractor is liable for use taxes as a
14  general or prime contractor. The general or prime
15  contractor shall withhold three percent (3%), plus the
16  increased rate under W.S. 39-16-104(b) if the tax under
17  that section is in effect, of the payments due a
18  nonresident subcontractor arising out of the contract
19  entered into between both contractors. The contractor shall
20  withhold the payments until the subcontractor furnishes him
21  with a certificate issued by the department showing all use
22  taxes accruing by reason of the contract between them have
23  been paid. The department may demand the withholdings at
24  any time to satisfy the use tax liability of the

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 1  subcontractor and any balance shall be released by the
 2  department to him. If a contractor fails to withhold
 3  payments or refuses to remit them upon demand by the
 4  department he is liable for any use taxes due the state by
 5  the nonresident subcontractor. This paragraph shall not
 6  apply to any subcontractor hired to provide labor only to
 7  alter, construct, improve or repair real property;

 8 

 9         Section 7.  W.S. 39-15-105(a)(iv)(E) is repealed.

10 

11         Section 8.

12 

13         (a)  Except as provided under subsection (b) of this
14  section, t
his act is effective July 1, 2001.

15 

16         (b)  Section 2 of this act is effective July 1, 2002.

17 

18                         (END)

 

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